By Mark Jaffe, EUCI energy writer
As data centers multiply and with them a sharp increase in the demand for electricity, nuclear power is poised for a resurgence providing as much as 10% of data center power in the next decade, according to a report by Deloitte.
“Nuclear energy presents a potential solution for meeting some of the growing electricity demands of data centers, with its reliable and clean energy profile,” the accounting and consulting firm said.
Deloitte estimates that after decades of relatively flat electricity demand, data centers could spur a big increase. The demand for data centers and artificial intelligence (AI) applications alone could rise fivefold by 2035, reaching 176 gigawatts (GW), placing pressure on existing generation.
Nuclear power provided about 19% of the country’s electricity in 2024 with only 8% of the overall generating capacity.
One key to the high output from nuclear plants is that they are efficient baseload power – operating round-the-clock at near full capacity, nearly 93% compared to capacity factors of 56% for natural gas, 35% for wind and 25% for solar.
“This reliability is important for data centers, helping to ensure uninterrupted operations and maximize return on investments, especially for AI and generative AI applications,” the Deloitte report said.
Another advantage, Deloitte said, is the high energy density of nuclear fuel, so that a small amount of nuclear fuel can generate a large amount of electricity with no greenhouse gas emissions.
In the face of large energy demands from data centers, nuclear reactors are also scalable. Large light water reactors typically generate 800 megawatts (MW), “readily meeting the demands of even the largest data center.”
Small modular reactors (SMR) currently under development would come in factory-built units of 50 MW to 77 MW with multiple units being assembled into one plant.
“Some industry stakeholders are exploring these technologies to expand nuclear’s potential and are looking at ways to advance SMR development,” Deloitte said.
Being able to take on 10% of the data center electricity demand will require the addition of 35 GW to 62 GW of nuclear generating capacity.
That capacity came come from a variety of sources, Deloitte said.
A first step is improving the efficiency and capacity of the 94 operating reactors in the U.S. Modifications such as improved fuel design, optimizing operating parameters and upgrading equipment could increase the “uprates” for these units. The cumulative uprates from 1977 to 2021 were equal to 8,030 MW.
Another cost-effective option would be to bring shuttered nuclear units back online. The estimated cost of restarting three nuclear plants with a combined 2 GW capacity is about $6.2 billion, Deloitte said, well below the $37-billion price tag for a comparable new plant.
Improving the timeline for issuing permits and standardizing reactors (there are currently more than 50 commercial reactor designs) could also help with deployment and reining in costs.
There are still cost challenges. In 2024, the capital cost to develop a new nuclear plant ranged from $6,417 per kilowatt (kW) to $12,681 a kW. Natural gas units average $1,290 a kW.
“We think you’re going to see people looking at existing nuclear infrastructure and adding capacity through those assets, then placing bets on technology development,” Martin Stansbury, report co-author and principal in Deloitte’s Energy, Resources & Industrials practice, told Utility Dive.
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